Ethereum Reaches Crucial Support Level as Market-Wide Selloff Slows

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  • Ethereum has seen remarkable bearish momentum in the past few hours, causing its price to undo the gains made during the last higher section
  • Where there are medium-term trends should largely depend on whether buyers can prevent it from falling below a key price region
  • This price move could also provide strong support in the days and weeks ahead. One analyst calls it a “solid buy” in the region
  • Bitcoin has run the aggregate market, which means that its price development is likely to control that of ETH in the medium term
  • Any break below the cryptocurrency’s key support level could cause ETH to see an accelerated decline towards the middle of the $ 500 region

It was a tumultuous day for Ethereum as the cryptocurrency showed some signs of weakness after a bitcoin dip to lows of $ 22,000.

While BTC has made up most of its losses after this decline, the price of ETH has remained quite low and shows few signs of recovery anytime soon.

Where to go next should depend largely on whether buyers will be able to get ETH going in the short term or not.

One trader notes that Ethereum is currently resting on an important support zone that could prop its price and allow it to see significantly more momentum in the coming days and weeks.

Ethereum is losing ground to Bitcoin as sellers take control

At the time of writing, Ethereum is down just over 3% at its current price of $ 617. This is roughly the same as the price it has been trading at in the past few hours.

Overnight, the price of the cryptocurrency fell to lows of $ 600 before finding greater support and rising higher.

It has grown slowly since then, but its recovery has not yet reached the intensity of Bitcoin.

Trader claims ETH is at an important level of support

While sharing his thoughts on Ethereum’s price performance, one trader stated that he is watching how crypto continues to respond to a key region of support that has been holding it up lately.

He notes that taking a break below this level could be bad and trigger a deep backtrack.

“ETH: Do you think green space is a solid buy. Break off below and I think we’ll accelerate towards range pretty quickly. “

Image courtesy George. Source: ETHUSD on TradingView.

If Bitcoin doesn’t tumble and create further headwinds for Ethereum, there is a strong chance that it will soon establish this as a soil to grow on.

Featured image from Unsplash. TradingView charts.